Oil cracks below $94 as US midterm shock bites
Oil prices dipped below $94 as the US midterm elections saw the Democrats gain control of both chambers of Congress, causing shockwaves in the market. Brent crude fell 1.05% to $93.51 a barrel, while US WTI crude slipped 1.35% to below $87. The midterm elections saw the Republicans suffer a major setback, with Democrats securing control of both chambers, leading to speculation that the Trump administration might seek a negotiated settlement with Iran to avoid further losses.
However, Gulf analysts cautioned that a settlement could lead to recklessness if it leaves Trump politically weakened. Iran's Supreme Leader Ayatollah Khamenei vowed to maintain US hostility, while Qatar intensified mediation efforts to prevent further escalation. The UAE is reportedly considering a third oil pipeline to reduce its dependence on the strategic Strait of Hormuz.
Goldman Sachs has raised its oil price forecasts, predicting that Brent crude could surge to $140 a barrel in 2027 if Gulf production remains below 2025 averages.
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